Hammack: Fed must raise rates to curb growth and inflation

News indicates the Fed may proceed with an interest rate hike, which is a negative signal for equity markets. GOOGL shares have already lost 2.76% in the last 24 hours, with the RSI at 38.79, indicating weak momentum. MACD values are negative and below the signal line, supporting a short-term downtrend. The price is trading below both the SMA20 and SMA50, reflecting a weak technical outlook. Therefore, the likelihood of continued downward movement in the near term is high.

Hammack's call for a rate hike strengthens the perception of a hawkish Fed, which could dampen risk appetite in the short term. With the RSI above 70, the market is in overbought territory, and this news could trigger profit-taking. The MACD remains positive, but momentum may weaken; while staying above the SMA20 and SMA50 supports the medium-term trend, the likelihood of a short-term correction increases. The index is expected to fluctuate within the 7750-7800 range and test the downside. However, a limited pullback seems more likely than a sharp decline.

The headline suggests the Fed may raise interest rates, sending a hawkish signal. This could reduce risk appetite and put pressure on growth-oriented indices such as the NDX. Technical indicators show the RSI at 71, indicating overbought conditions, which increases the likelihood of a short-term correction. The MACD is positive, and the price remains above the SMA20 and SMA50, but the news flow could hinder the continuation of this uptrend. Therefore, a downward movement may be expected in the short term, although the impact could be limited.

Hammack's hawkish remarks on interest rate hikes could lend short-term support to the dollar index. Technically, the price is balanced near the 20- and 50-day moving averages; the RSI is in neutral territory, and although the MACD remains below the signal line, the gap is narrowing. This news may trigger an upward breakout from the current consolidation, but the strength of the move could remain moderate given limited volume and market expectations. While a short-term upward bias seems possible, an excessive rally should not be anticipated.